Intro – What is a Trade Signal?
A trade signal is a transactional idea offered by one party to an individual or a group. In recent years, a vast number of enterprises have emerged with the mission of providing trade ideas to willing market participants. Nowadays, on various social media platforms, different groups charge people extravagant fees in exchange for trade ideas shared at their personal preference and planning.
For example, with global market standards, a trade signal might look like this:
Buy USD/CHF @ [0.884]
Take Profit: 0.9
Stop Loss: 0.883
Discrepancies in the Conception and Provision
Despite the abundance of “signal providers” in the market, the quality of provision is often low. Most of these groups lack consistency and profitability while delivering unrealistic results and making false promises. Many of these enterprises copy content from one another, indicating a lack of knowledge and professionalism. This behaviour shows their willingness to make money from membership fees rather than from the financial markets.
The conception of trade signals is similarly distorted. The purpose of trade signals is not to generate quick profits or to get rich overnight. Instead, these ideas should be used as a means of confirmation and confluence. For instance, if you plan to open a BUY position on EUR/USD, and the signal provider you follow is also planning the same, it gives you enough confluence to proceed, knowing other market participants share your view.
The Correct Delivery of Trade Signals
Every trade signal should include the following factors:
– a clear statement of which financial security is being traded
– indication of what type of position is being opened
– predefined Take Profit and Stop Loss levels
– potential gain/loss and pip-difference numerics
– risk notice
– a technical chart analysis to support the idea visually
Additionally, every idea should be followed up with updates until closure (limit order activation, TP hit, early closure, breakeven exit).
Investroy Academy Trades
It might seem bold of us to promote our services, but realistically, this is what a real trade signal should look like as implied in the preceding paragraph:
At Investroy Academy, all our trade publications include every vital element that should be delivered correctly. We provide members with all the needed information, allowing them to make decisions based on their own approach within the market.
To give further confirmation, all trade ideas shared within our Academy are the same transactions we enter on our own trading accounts. This can be verified through an external party (MyFxBook) that we have utilised to connect one of our new trading accounts starting from 17/07.
Since day one, our approach has been to reshape the traditional doctrine regarding the provision of trade signals and deliver a new methodology. We never urge anyone to execute the trade ideas we publish. Instead, we offer trade signals as a means of confluence and education, allowing our members to take independent action.
Additionally, every trade idea of ours is thoroughly recorded in the ‘Journals’ and ‘Results’ sections of the Investroy Academy, aiding in viewing the historical track-log.
Conclusion – a Trade Signal is not a Dictum
Trade signals should neither be treated as dictums nor regarded as cash machines. Trading is a marathon, not a sprint. Therefore, expecting quick and easy money is a utopian approach.
Use trading ideas to provide confluences for yourself. They can also serve educational purposes, helping you understand the thought process of the provider. This gives you insights into how various traders conduct operations, from which you may derive important takeaways.
